Volume 5, Issue 109

March 30, 2012

Weekly Market Report

Indices
Main JSE All Jamaican Composite Jamaican Select Cross Listed Index Junior USD Index

Closed At
91,369.00 96,326.20

Change
-1.28% -2.01%

Jamaica Stock Market Summary

The three main stock market indices decreased, while the junior market index increased at the end of trading activity over the past week. The volume and value of ordinary stocks traded for the week was 18 million units and $238 million respectively. Of the forty-one (41) stocks traded, fifteen (15) advanced, twenty (20) declined and six (6) held firm. The best performing ordinary shares and weekend closing prices were as follows: AMG Packaging 7.87% $4.05, Dolphin Cove 7.36% $7.00, Lasco Distributors 6.78% $12.02. The main losers and weekend last sale prices were: Carib Cement 17.35% $2.38, Salada 15.00% $8.50, Supreme Ventures 9.99% $2.60.

2,725.46 784.77

-2.49% 0.00%

655.49 64.29

3.69% -9.91%

Barita Investments Limited reported improved financial results for its 1st quarter ended December 2011 showing a trailing EPS of $0.53, up 67% from the previous year. This results in a P/E of 7.36X and a P/BV of 0.96X based on todays closing price of $3.90. This is compared to the financial industrys average P/E of 10.71X and P/BV and 1.05X. The stock price is up 103.13% since last year. Barita reported a 57% increase in profits for the quarter amounting to $50.6 million. This improvement was attributed to a 36%, 124%, 218% and 89% increase in net interest income, fee & commission income, dividend income and gains on sale investments , respectively read more
Upcoming Dividend Payments

BARITA WEEKLY MARKET REPORT

Page 2

Money Market Review

Assets valued at J$45.2 billion matured during the week from the Bank of Jamaicas (BOJ) Open Market Operations compared to J$17.0 billion during the previous week.
The GOJ this week reopened a Fixed Rate Benchmark Investment Note Due 2040. The bond came at a coupon rate of 13.25% p.a. and a yield to maturity of 11.28% with semi-annual interest payments. The take-up from the market for this fixed rate bond was substantial, with approximately $740 million going into the issue.

Barita Money Market Fund, which

is #1, with a 12 month growth rate of

Invest in the

During the week J$ money market 30 day rates traded between 6.35% to 6.45%, while overnight rates traded between 3.00% to 4.00%. For the US currency, 30 day rates traded between 3.00% to 4.00%, while overnight rates traded around 3.00%.

11.34%.

Figures are based on past performance for the period March 30, 2011 March 30, 2012.

GOJ Global Bonds

Year of Maturity
2012 2014 2015 2017 2019 2022 2025 2036 2039 2015 AIR J 2027 AIR J 2021 CAP JAM 2024NROCC

Currency
EURO EURO USD USD USD USD USD USD USD USD USD USD USD

Offer Price* (30/03/2012)

102.25 104.50 108.25 116.50 103.25 138.50 107.50 101.50 95.00 105.75 96.25 99.50 103.00

Offer Price* (23/03/2012)

102.25 104.50 108.25 116.50 103.50 139.00 107.00 101.50 95.00 105.75 96.25 99.50 103.00

Offer Yield Offer Yield (30/03/2012) (23/03/2012)

3.44% 8.43% 6.09% 6.81% 7.33% 6.29% 8.32% 8.35% 8.48% 5.83% 8.70% 8.63% 8.97% 3.83% 8.44% 6.10% 6.82% 7.29% 6.24% 8.38% 8.35% 8.48% 5.86% 8.70% 8.63% 8.97%

Yield Change
-0.39% -0.01% -0.01% -0.01% 0.04% 0.05% -0.06% 0.00% 0.00% -0.03% 0.00% 0.00% 0.00%

*NB: The rates quoted above are opening indicative levels and are subject to change due to increased volatility in the international markets.

BARITA WEEKLY MARKET REPORT

Page 3

FX Rates As At March 30, 2012

Weighted Average Selling Price US CAD GBP 87.3000 87.6466 139.2794

Foreign Exchange Market Review

The foreign exchange market opened the week's trading at a weighted average of JA$87.29: US$1.00. The dollar fluctuated on average between a band of $87.28 and $87.31 in trading this week. The dollar traded as high as $93.80 during the period on small volumes and ended at an average rate of $87.30, a depreciation of 0.02%. The BOJ made no interventions in the market this week. Trading in the Jamaican dollar for the period resulted in a loss of approximately 0.03% against the Canadian dollar and a loss of 0.17% against the Pound Sterling to close the period at JA$87.65 and JA$139.28 respectively.

USD Volume for March 26-30, 2012

Total Purchased 189,789,866

Total Sold 198,124,437

Local News Update

Caribbean Cement is reporting that it has achieved record export sales following shipments to Trinidad and Tobago which is still trying to recover from the effects of a five week old strike at Trinidad Cement Ltd read more Jamaica's Minister of Energy, Mining and Telecommunications Phillip Paulwell has taken it upon himself to liberalise the energy sector and diversify fuel sourcesread more

Jamaicas sugar production was up by 29% during The Government is to get a US$995,000 ($86.6 the first two months of the 2012 cane crop million) dividend payment from Jamaica Public according to the Bank of Jamaicaread more Service Company in two weeksread more Shareholders of Kingston Wharves Limited voted Cable & Wireless Jamaica, said it is still awaiting an Thursday in favour of resolutions to create and allot emergency legislation to be re-tabled in a block of newly authorised shares, giving Jamaica parliament, which will allow Digicel's rivals to Producers Group Limited a bigger stake in the port charge lower cross-network rates without company which will result in a 25% dilution of incurring sizeable lossesread more sharesread more A local tourism study by Oxford Economics proposes a revolutionary view that three-quarters of the J$229 billion in annual tourism earnings remain within Jamaica, which indicates the sector's increased importance to local commerce read more Financial Analyst, Dennis Chung has stated he believes the Government has made the right decision to delay the 2012/2013 Budgetread more

Jamaica will continue discussions with the International Monetary Fund April 20 to 22, in The Government plans to table a green paper on Washington, DC, United Statesread more micro small and medium enterprise (MSME) and entrepreneurial policy as early as next month This week saw audited results for Montego Bay read more Ice Company Ltd.

BARITA WEEKLY MARKET REPORT

Page 4

International Round-Up
Stocks managed a decent gain for the week that took the large-cap indexes back to the multiyear highs they established earlier in the month. The market enjoyed the bulk of its gains at the start of the week, as investors were cheered by remarks by Federal Reserve Chairman Ben Bernanke. In a speech to business economists, the Fed chairman stated that persistent problems in the labor market due to "a general shortfall of aggregate demand" merited continued monetary accommodationa remark some interpreted to mean a further round of stimulus might be possible. The week's job data remained generally encouraging, however, as weekly jobless claims fell to the lowest level since April 2008. Better labor conditions were reflected in consumer spending, which rose substantially in February despite a much more modest gain in personal incomes. The University of Michigan/Reuters gauge of consumer sentiment also reached its highest level in a year. Investors however continued to worry about economic conditions overseas. Economic growth contracted a bit in the UK, and worries grew that Spain would become the next country in the region to need a bailout in order to address its deteriorating debt situation. For the week the Dow index grew 1% to close at 13,212. The S&P 500 inched up 0.8% to close at 1,408, while similarly the Nasdaq finished 0.8% higher to close the week at 3,092. Crude oil decreased 3.7% for the week to end at $103.02 per barrel. Gold futures added 0.6% for the week closing $1,671.90 per ounce. world faces a non-trivial threat of acute oil supply disruptions.

Weekly Outlook
Government of Jamaica Global bonds continue to consolidate at the levels that they recovered to earlier this year. Local currency bond trading was characterized by relative tightness in the Jamaican dollar as a result of moves by major institutional players. Equity markets ended the week closer to the lower end of their recent consolidation pattern, with the exception of the JSE Junior Market, which was up, even though it has been in a downtrend for the past five months. Investors appear to be waiting for policymakers to provide details on the path they desire to take over the medium term.

Without policy guidance on the domestic macroeconomic situation, investors can focus on the international share of their portfolios; where in the US, stock markets have had their best first quarter since 1998. In our view the market valuation suggest the rally can continue, but we are cautious, simply because of the magnitude of the move that has already taken place, and the large share of S&P 500 companies revenue that comes from slowing economies outside the US. We do however, think that as long as the labour market continues to improve, the US domestic The announcement this week by the government economy will do better, and as such we think that the budget for the upcoming financial year will strong companies levered to the US consumer be postponed, and will not be presented to should be held going forward. parliament until sometime in May has resulted in Bullish market participants have highlighted the uncertainty in the outlook for the economy. The sizeable difference between US Gross Domestic announcement raises questions about the status of Product (GDP) and Gross Domestic Income (GDI), the countrys relationship with the IMF; as to the which theoretically, should converge over the long type of agreement that is being sought with the term. Annualized GDP was 3.0% in the fourth Fund, what are the details of the reforms that will quarter while GDI was 4.4%, this large divergence be implemented, what, if any, separate revenue is what bulls point to, to explain the sizeable inraising measures will the government put in place. creases in employment in recent months. The delay comes at a time when the countrys Barita Investments Limited balance of payments situation is deteriorating, the 15 St. Lucia Way, Kingston 5, Jamaica Phone: 876-926-2681, Toll Free: 1-888-429-5333 Net International Reserves have declined, and the
Disclaimer: Barita makes no representations or warranties about the accuracy or completeness of the information contained herein. Opinions and recommendations (if any) are given in good faith but without legal responsibility and are subject to change without notice. Barita Investments Ltd. and/or companies connected with it, its clients and officers may have a position in or engage in transactions in any of the securities mentioned. The interest of Barita Investments Ltd., its representatives and its officers are available on request in accordance with Sec. S.39(1) of the securities act of 1993. Investors should be aware that past results are no guarantee of future performance. Consult the appropriate professional advisor for more complete information.